Shalimar Paints hits positive EBITDA for the first time since acquisition
The paint manufacturer narrowed annual losses to ₹64.95 crore as it shifted its product mix toward higher-margin emulsions.
— 1 earlier story on Shalimar Paints Ltd. →What's new
- Annual revenue fell to ₹582.15 crore from ₹609.65 crore in FY25.
- Net losses narrowed to ₹64.95 crore, down from ₹81.17 crore.
- Management credits cost rationalization and a shift to high-margin emulsions for the turnaround.
Why this matters
Achieving positive EBITDA is a foundational step for a company that has struggled with profitability since its acquisition. While revenue is still contracting, the focus on margin over volume suggests a deliberate attempt to fix the unit economics of the business.
What we're watching
- Whether the company can return to top-line growth in FY27.
- Sustainability of the margin improvements as the product mix shifts.
- Further reduction in net losses in the coming quarters.
The full read
Shalimar Paints is showing signs of a turnaround under its new parent, Hella Infra Market Limited. In its audited results for FY26, the company recorded its first positive EBITDA since the acquisition.
It is a start.
Even as top-line figures softened, with consolidated revenue dropping to ₹582.15 crore from ₹609.65 crore in the prior year, the company is trading volume for value by aggressively cutting costs and pivoting its product portfolio toward high-margin emulsions. This strategy is beginning to show in the bottom line, where net losses narrowed to ₹64.95 crore from ₹81.17 crore. The next test is whether the company can stabilize its revenue base while maintaining these improved margins, as the shift from a pure volume-chasing model to a margin-focused one remains the primary story.
Questions answered
- How did the company achieve positive EBITDA despite falling revenue?
- Management points to aggressive cost rationalization and a strategic pivot toward high-margin emulsions. This shift prioritizes profitability per unit over total sales volume.
- What was the financial performance compared to the previous year?
- Revenue declined to ₹582.15 crore from ₹609.65 crore. However, net losses improved, narrowing to ₹64.95 crore from ₹81.17 crore.
- Is this the first time the company has reported positive EBITDA under its current owners?
- Yes. This is the first positive EBITDA result since Hella Infra Market Limited acquired the company.
- What is the primary driver of the current strategy?
- The company is focusing on high-margin emulsions to improve its bottom line, moving away from lower-margin products that previously weighed on performance.
Story so far
All notes on SHALPAINTS →- 28 May 2026 · 7:08 PM IST Shalimar Paints hits positive EBITDA for the first time since acquisition
- today Shalimar Paints hits first positive EBITDA since Hella acquisition